BCIP Plan

Background of BCIP:

Blue Chip Investment Plan (BCIP) is a product that is introduce by OCBC bank. Basically, it is a regular investment plan that help investor to buy shares with a fixed monthly investment amount. This allows the investor to buy shares in smaller numbers of shares instead of standard lot size.

The plan will purchases the chosen share on 22th of each month and the regular fee of 0.30% is paid when investor buy or sell through BCIP.

Rationale:

The rationale is to create an endownment fund for the kids through regular investment plan. WEESTOCK has decided use DIY approach rather than purchase endownment fund from Insurance company. This is based on the assumption that DIY approach will have better return compared to endownment fund provide by Insurance company.

There are total of 19 counters to choose from for the BCIP. Since this is an investment fund for the kids, WEESTOCK decided to restrict the investment to the following sector:

• Finance
• Transport, Storage & Communications
• Properties

The companies in the above sector must have a huge pressence in Singapore and should be an basic necessity. WEESTOCK decides to invest in Finance Sector and the blue chip stock chosen for this BCIP plan is UOB. This is based on the study done on here. Furthermore, the price of this share must be higher than the monthy investment amount else there is no advantage of using the BCIP scheme as WEESTOCK can purchased the share through Standard Chartered Securities, which offer even lower commission.

Instruction on BCIP: